On the Block: Out in the Cold

As one third of the country prepares
for winter weather this week, state and local governments are
struggling to find a way to pay for the aftermath. Snow and ice
removal is taking a toll on budgets across the country, and winter is
not yet over. Today we'll take a quick look at some of those
governments and how they are planning to meet their needs.

States that do not usually see snow in
the winter, particularly in the South, are finding other places in
the budget to take their snow removal money from. South Carolina, who
spent an
estimated $2.7 million on the mid-January storm that lingered for
4 four days, is using funds from their annual road maintenance
account to compensate.

Local governments in Alabama are stuck
with the costs of snow removal at the municipal level because they
did
not meet federal cost thresholds. They spent $2 million clearing
out after last week's storm, but they needed to spend at least $5.8
million to qualify for federal emergency aid.

Other states like New Jersey, who are
used to brutal winters with plenty of snowfall, are also having
trouble making ends meet. New Jersey spent their entire snow removal
budget of $20
million before last week's storm, which dropped another foot of
snow. The New Jersey Department of Transportation is also borrowing
money from other columns on the spreadsheet, but has applied to the
federal government for over $50 million in aid.

Still more locales are used to
under-budgeting for snow removal and betting on being able to borrow
from other government accounts to make up the difference. In
Northampton, MA, the government borrowed
for snow removal last year but did not increase this year's
budget to compensate and so must borrow again. The city used
to purchase snow removal insurance to help with this, but the
premiums rose and the city has declined to purchase it for the last
three years. All this as the city's Mayor declares a State
of Emergency to help the Department of Public Works deal with
already unpassable roads and an expected additional foot of snow by
February 2, 2011.

Aside from the giant costs of plows,
road salt, and labor, there are many more ways in which winter storms
hurt already straining budgets. The city of New York suspends
parking meter collections during snow storms, losing money each
time the city gets hit with a blizzard. Airports
accross the country will be affected by this week's weather,
stranding travelers and costing airlines and airports millions in
lost revenue.

While elected officials at every level
of government wrestle with tough budgeting choices, this winter's
snow storms offer us an important reminder about the fundamental
services that cannot be cut, including those that keep the public
safe.